Pump prices could rise after US, EU hit Russian oil companies with new
sanctions and oil spikes
[October 24, 2025]
By MATT OTT
WASHINGTON (AP) — Oil prices spiked Thursday after the U.S. announced
massive new sanctions on Russia's oil industry in an attempt to get
Russian President Vladimir Putin to the negotiating table and end
Moscow’s brutal war on Ukraine.
U.S. benchmark crude jumped 5.6% to $61.79 per barrel and analysts say
if the situation remains static, U.S. consumers will soon be paying more
at the pump.
Patrick De Haan, head of petroleum analysis for GasBuddy, said while it
was difficult to predict with certainty because of the number of moving
parts, consumers will likely see a bump in prices as early as next week,
if not sooner.
“We'll probably start to see motorists be impacted by the sanctions at
the pump in the next couple days and it might take five days for that to
be fully passed along,” De Haan said, adding that the full impact also
depends on whether the Russian or U.S. positions change.
“Russia will feel pressure to come to the table in light of of the new
developments or President Trump may react when he sees oil prices rising
to levels that become uncomfortable, so I don’t think this is going to
be very long lasting,” De Haan said.
Oil prices have been relatively low for the past few years and last week
the cost for barrel of U.S. benchmark crude fell below $57, its lowest
level since early 2021. The price for a barrel of U.S. benchmark crude
did rise near $79 a barrel early this year, just before President Donald
Trump took office, a price not necessarily considered outrageously
elevated by most analysts.
The broad, extended decline in oil prices pushed the average price for a
gallon of gas in the U.S. last week under $3 for the first time since
December of last year, according to GasBuddy.
For much of 2025, inflation has been held mostly in check, partly due to
cheaper prices at the pump. However, that could change quickly as higher
energy costs have a downstream effect on prices for virtually all
products and services across industries.
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A person pays for fuel at a Shell gas station, Tuesday, July 29,
2025, in Arlington, Texas. (AP Photo/Julio Cortez, File)
“The impact to a lot of Americans is that products derived from
crude, gasoline, diesel and jet fuel are all likely to see price
increases,” De Haan said.
The main reason oil and gas have stabilized at lower levels this
year is that the group of countries that are part of the OPEC+
alliance of oil-exporting countries have continued to boost
production. Earlier this month, OPEC+ leaders announced they would
raise oil production by 137,000 barrels per day in November, the
same amount announced for October. The group has been raising output
slightly in a series of boosts all year after announcing cuts in
2023 and 2024.
Russia is the leading non-OPEC member in the 22-country alliance.
The group's next meeting is scheduled for Nov. 2.
The sanctions against Russian oil giants Rosneft and Lukoil follows
calls from Ukrainian President Volodymyr Zelenskyy as well as
bipartisan pressure on Trump to hit Russia with harder sanctions on
its oil industry, the economic engine that has allowed Russia to
continue to execute the grinding conflict even as it finds itself
largely internationally isolated. The European Union on Thursday
announced its own measures targeting Russian oil and gas.
The price for Brent crude, the international standard, rose 5.4% on
Thursday to $65.99 per barrel.
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